Ind. Code § 6-6-15-1 Applicability
Sec. 1. This chapter applies only after December 31, 2018, to the rental of taxable heavy rental equipment.
As added by P.L.188-2018, SEC.3.
Ind. Code ch. 6-6-15
Ind. Code ch. 6-6-15
in effectInd. Code § 6-6-15-2 Definitions
Sec. 2. The following definitions apply throughout this chapter:
(1) "Department" refers to the department of state revenue.
(2) "Gross retail income" has the meaning set forth in IC 6-2.5-1-5, except that the term does not include taxes imposed under IC 6-2.5 or the excise tax imposed under this chapter.
(3) "Heavy rental equipment" means all rented tangible personal property:
(A) that is owned by a person or business that:
(i) primarily rents equipment described in 532412 of the North American Industry Classification System Manual in effect on January 1, 2018; and
(ii) is a retail merchant in the business of renting heavy equipment, including any attachments or accessories;
(B) that is not intended to be permanently affixed to any real property; and
(C) that is not subject to registration under IC 9-18.1 for use on a public highway (as defined in IC 9-25-2-4).
A person is considered to primarily rent equipment described in 532412 of the North American Industry Classification System Manual in effect on January 1, 2018, if the rental of the equipment generates the largest portion of the person's gross revenue and the person lists 532412 as the person's principal business activity code on the person's Indiana adjusted gross income tax return. In the case of a person who is an affiliate included in an Indiana consolidated or combined adjusted gross income tax return, the person may provide a copy of the federal Form 851 filed with the Internal Revenue Services that lists 532412 as the person's principal business activity code. For purposes of this chapter, the department may rely on the principal business activity code listed for the person on the person's Indiana adjusted gross income tax return of the federal Form 851, and the person may not apply any change to the listing on any amended return or subsequent return or federal form for purposes of this chapter without the approval of the department.
(4) "Person" has the meaning set forth in IC 6-2.5-1-3.
(5) "Rental" means any transfer of possession or control of heavy rental equipment for consideration:
(A) for a period not to exceed three hundred sixty-five (365) days; or
(B) for a period that is open ended under the terms of the rental contract with no specified end date.
(6) "Retail merchant" has the meaning set forth in IC 6-2.5-1-8.
As added by P.L.188-2018, SEC.3. Amended by P.L.10-2019, SEC.41; P.L.234-2019, SEC.25.
Ind. Code § 6-6-15-3 Imposition of the heavy equipment rental excise tax; rate of tax; collection
Sec. 3. (a) An excise tax, known as the heavy equipment rental excise tax, is imposed upon the rental of heavy rental equipment from a retail merchant in Indiana and received from the retail merchant in Indiana. Equipment rented from a location outside Indiana is exempt from the excise tax.
(b) The heavy equipment rental excise tax imposed under this chapter is two and twenty-five hundredths percent (2.25%) of the gross retail income received by the retail merchant for the rental.
(c) A retail merchant subject to the heavy equipment rental excise tax is required to collect and remit the excise tax on all rentals of tangible personal property.
As added by P.L.188-2018, SEC.3. Amended by P.L.234-2019, SEC.26; P.L.156-2020, SEC.28.
Ind. Code § 6-6-15-4 Exemptions
Sec. 4. (a) A transaction involving the rental of heavy rental equipment is exempt from the tax imposed by this chapter if any of the following apply:
(1) The rentee is:
(A) the United States government;
(B) the state;
(C) a political subdivision (as defined in IC 36-1-2-13); or
(D) an agency or instrumentality of an entity described in clauses (A) through (C).
(2) The transaction is a subrent of the heavy rental equipment from a rentee to another person, and the rentee was liable for the tax imposed under this chapter.
(3) The heavy rental equipment is rented for mining purposes or would be eligible for a property tax abatement deduction under IC 6-1.1-12.1 during the calendar year if the rentee was considered the owner of the equipment for income tax purposes or property tax purposes.
(b) A rentee asserting an exemption under subsection (a) shall complete the form prescribed by the department and the retail merchant may rely on the completed form.
As added by P.L.188-2018, SEC.3. Amended by P.L.234-2019, SEC.27.
Ind. Code § 6-6-15-5 Liability for tax; collection
Sec. 5. A person that rents heavy rental equipment is liable for the heavy equipment rental excise tax on the transaction. The person shall pay the tax to the retail merchant as a separate amount added to the consideration for the transaction. The retail merchant shall collect the tax as an agent for the state.
As added by P.L.188-2018, SEC.3.
Ind. Code § 6-6-15-6 Payment and sourcing of the tax; credit for misclassification
Sec. 6. (a) Subject to subsection (b), a retail merchant shall remit the heavy equipment rental excise tax that the retail merchant collects under this chapter in the same manner as the state gross retail tax is remitted under IC 6-2.5.
(b) The heavy equipment rental excise tax imposed under this chapter shall be sourced to the business location of the retail merchant from which the heavy rental equipment is rented.
(c) The return to be filed for the payment of the heavy equipment rental excise tax may be either a separate return or may be combined with the return filed for the payment of the state gross retail tax, as prescribed by the department.
(d) In the event of a misclassification, a person shall receive a credit:
(1) for any Indiana property tax paid on the equipment for a calendar year against any excise tax owed on the equipment in the same calendar year; and
(2) for any excise tax paid on the equipment for a calendar year against any Indiana property tax owed on the equipment in the same calendar year.
As added by P.L.188-2018, SEC.3. Amended by P.L.234-2019, SEC.28.
Ind. Code § 6-6-15-7 Heavy equipment rental excise tax account; distributions and apportionment of the tax
Note: This version of section effective until 1-1-2027. See also following version of this section, effective 1-1-2027.
Sec. 7. (a) All revenues collected from the heavy equipment rental excise tax must be deposited in a special account of the state general fund called the heavy equipment rental excise tax account.
(b) On or before April 30 and October 30 of each year, all amounts held in the heavy equipment rental excise tax account must be distributed to counties as provided by this section.
(c) The amount to be distributed to a county treasurer under this section equals the part of the total heavy equipment rental excise taxes being distributed that were initially imposed and collected from within that county treasurer's county. The department shall notify each county auditor of the amount of taxes to be distributed to the county treasurer. At the same time each distribution is made to a county treasurer, the department shall certify to the county auditor the taxing districts within the county where heavy equipment rental excise taxes were collected and the amount of the county distribution that was collected with respect to each taxing district.
(d) A county treasurer shall deposit heavy equipment rental excise tax distributions in a separate account for settlement at the same time as property taxes are accounted for and settled in June and December of each year.
(e) The county auditor shall apportion and the county treasurer shall distribute the heavy equipment rental excise taxes among the taxing units of the county in the same manner that property taxes are apportioned and distributed with respect to property located in the taxing district where the heavy equipment rental excise tax is sourced by the department under section 6(b) of this chapter.
(f) Before January 1, 2020, the heavy equipment rental excise taxes distributed to a taxing unit must be deposited in the taxing unit's levy excess fund under IC 6-1.1-18.5-17, or in the case of a school corporation, the school corporation's levy excess fund under IC 20-44-3.
(g) After December 31, 2019, the heavy equipment rental excise taxes distributed to a taxing unit must be allocated among the taxing unit's funds in the same proportion that the taxing unit's property tax collections are allocated among those funds.
(h) After December 31, 2019, taxing units of a county may request and receive advances of heavy equipment rental excise tax revenues in the manner provided under IC 5-13-6-3.
(i) All distributions from the heavy equipment rental excise tax account must be made by warrants issued by the state comptroller to the treasurer of state ordering those distributions to the appropriate county treasurer.
As added by P.L.188-2018, SEC.3. Amended by P.L.9-2024, SEC.214.
Ind. Code § 6-6-15-7 Heavy equipment rental excise tax account; distributions and apportionment of the tax
Note: This version of section effective 1-1-2027. See also preceding version of this section, effective until 1-1-2027.
Sec. 7. (a) All revenues collected from the heavy equipment rental excise tax must be deposited in a special account of the state general fund called the heavy equipment rental excise tax account.
(b) On or before April 30 and October 30 of each year, all amounts held in the heavy equipment rental excise tax account must be distributed to counties as provided by this section.
(c) The amount to be distributed to a county treasurer under this section equals the part of the total heavy equipment rental excise taxes being distributed that were initially imposed and collected from within that county treasurer's county. The department shall notify each county auditor of the amount of taxes to be distributed to the county treasurer. At the same time each distribution is made to a county treasurer, the department shall certify to the county auditor the taxing districts within the county where heavy equipment rental excise taxes were collected and the amount of the county distribution that was collected with respect to each taxing district.
(d) A county treasurer shall deposit heavy equipment rental excise tax distributions in a separate account for settlement at the same time as property taxes are accounted for and settled in June and December of each year.
(e) Subject to IC 6-1.1-27-10, the county auditor shall apportion and the county treasurer shall distribute the heavy equipment rental excise taxes among the taxing units of the county in the same manner that property taxes are apportioned and distributed with respect to property located in the taxing district where the heavy equipment rental excise tax is sourced by the department under section 6(b) of this chapter.
(f) Before January 1, 2020, the heavy equipment rental excise taxes distributed to a taxing unit must be deposited in the taxing unit's levy excess fund under IC 6-1.1-18.5-17, or in the case of a school corporation, the school corporation's levy excess fund under IC 20-44-3.
(g) After December 31, 2019, taxing units of a county may request and receive advances of heavy equipment rental excise tax revenues in the manner provided under IC 5-13-6-3.
(h) All distributions from the heavy equipment rental excise tax account must be made by warrants issued by the state comptroller to the treasurer of state ordering those distributions to the appropriate county treasurer.
As added by P.L.188-2018, SEC.3. Amended by P.L.9-2024, SEC.214; P.L.157-2026, SEC.159.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026